Fertilizer Production And Marketing In Egypt ... - Abt Associates

Accordingly, when international prices are higher than domestic prices these firms prefer to export
instead of selling locally. This results in a shortage in the local market. When international prices are
lower than domestic prices, exports are discouraged and imports are encouraged 30% duty resulting
in surplus of nitrogen fertilizer in the local market one of the main solutions to this problem is to adjust
local prices of nitrogen periodically to match the international prices.
It should be kept in mind that the different fertilizer benchmarks aimed at increasing the role of the
private sector in the fertilizer sub-sector whether in production or distribution in order to realize the main
objective of increasing competition among producers and traders to provide a better and cheaper
fertilizer to the farmer-user. However, this system of operation that is agreed upon by the members of
the EAFDT dos not satisfy this objective as it deletes the competition among producers and among
traders even though it operates to stabilize fertilizer prices.
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